Innov8 FY24: Profit Zooms Multifold To INR 62 Cr

OYO-owned coworking startup Innov8 saw its profit after tax (PAT) jump multifold to INR 62 Cr in the financial year 2023-24 (FY24) from INR 2.5 Cr in the previous year.

The company attributed the growth in its bottomline to its asset light business model, which is a combination of flexible and coworking spaces, as well as its strategic presence in key clusters in metro cities.

Ritesh Malik, founder of Innov8, declined to comment on revenue generated by the company in FY24. The company claimed that it is one of the only two companies currently profitable in the flexible space business.

Founded in 2015, Innov8 offers premium coworking spaces across nine cities, including Delhi NCR, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, Hyderabad, and Indore.

The company, which was acquired by OYO in 2019, forayed into the managed office space segment in October this year, aiming to add 4 Mn square feet to its existing footprint in India.

Innov8 currently operates 45 centres accommodating around 17,000 seats. The startup plans to double its centres and increase its seating capacity to 50,000 next year.

It claims to cater to several high-profile brands such as Swiggy, PhonePe, Jio Saavn, among others. 

The startup competes against the likes of Awfis, 91springboard, COWRKS, Bhive and WeWorkIndia in the shared workspaces market.

Further, Innov8 plans to raise INR 100 Cr in 2025 to support strategic growth opportunities such as acquisitions, tech upgrade, partnerships and expansion into niche categories, the company said in a statement.

This comes at a time when demand for coworking and flexible work spaces is on the rise in India. An increasing number of global capacity centres, startups, SMEs and large enterprises are adopting coworking spaces to optimise operational costs and increase employee productivity.

CBRE’s India Office Occupier Survey found that flexible space providers have captured more than 15% of the total office leasing market shares. Nearly half of the surveyed companies designated 10% of their total office space as flexible, and this number is set to grow to close to 60% in the next couple of years. 

This boom has turned the spotlight on several coworking startups. Awfis made its stock market debut earlier this year, while DevX and Smartworks have filed their draft IPO papers with SEBI.

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